Administrative theory is a framework that focuses on the organization and management of institutions. It emphasizes the importance of structure, processes, and procedures to ensure efficiency and effectiveness in achieving organizational goals. Key principles include division of labor, hierarchy, and clear communication channels. Developed by theorists like Henri Fayol and Max Weber, administrative theory seeks to establish guidelines for managers to improve decision-making and resource allocation. It highlights the role of management in coordinating activities and fostering a productive work environment, ultimately contributing to the overall success of an organization.